Final answer:
The true statement about welfare is that it benefits farmers and homeowners, as welfare includes various programs aimed at assisting those in need. Reforms have shifted from welfare to workfare, debunking the notion that once on welfare, always on welfare, and most aid goes to those genuinely in need.
Step-by-step explanation:
The true statement about welfare from the options provided is that welfare programs benefit farmers and homeowners. Welfare encompasses a variety of government support programs aimed at assisting those experiencing poverty. This includes programs like SNAP, Medicaid, and the earned income tax credit (EITC), which support different segments of the population, including farmers and homeowners in certain cases.
It is not accurate to say that 'Once on welfare, always on welfare' as reforms in the 1990s transitioned from welfare to workfare, introducing work requirements and time-limited benefits. Welfare fraud, while it occurs, may not be as prevalent as presumed and the claim that 'Most income assistance goes to able-bodied people who are capable of working' fails to recognize that many beneficiaries are children, the elderly, or those with disabilities.
The EITC aims to mitigate the poverty trap by providing tax credits that increase with earnings, encouraging work without a steep drop-off in benefits. The Temporary Assistance for Needy Families (TANF) program also aims to reduce the poverty trap by offering time-limited assistance with a focus on getting recipients into work.